Community spirit lowers chances of debt

The latest research has revealed that having strong neighbourhood ties means you are less likely to report being in debt.

The findings were released from a researcher at the University of Sheffield, after analysing data from Understanding Society.

Here the author, Sarah Brown comments,

“Our findings, which relate to the post financial crisis era, suggest that households in regions characterised by strong neighbourhood ties are less likely to report being in arrears and that this relationship is particularly apparent in the case of housing costs.”

“This inverse relationship is strongest in regions characterised by a high density of individuals who feel able to turn to someone in the neighbourhood for support or advice. Thus, neighbourhood and community groups, which enhance social interaction and neighbourhood ties, may be effective channels of support for financially vulnerable households,” she continues.

To reach these results, the survey participants were asked about their rent/mortgage, Council Tax and household bills.

Participants were then asked if they strongly agree; agree; neither agree nor disagree; disagree; or strongly disagree with certain statements including, ‘I feel like I belong to this neighbourhood’ to reach the results.

When the two results merged, certain correlations were found between the strength of communities and people’s financial situations.

To see the exact data and methodology, please read the full report from the author.